Question
18 Concord is contemplating a capital project costing $32838. The project will provide annual cost savings of $12600 for 3 years and have a salvage
18 Concord is contemplating a capital project costing $32838. The project will provide annual cost savings of $12600 for 3 years and have a salvage value of $2000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value PV of an Annuity Year of 1 at 10% of 1 at 10% 1 .909 .909 2 .826 1.736 3 .751 2.487 This project is O acceptable because it has a positive NPV. unacceptable because it has a negative NPV. acceptable because it has zero NPV. unacceptable because it earns a rate less than 10%. Click if you would like to Show Work for this question: Open Show Work
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